When Canada increases its net capital outflow, it causes Canadian national saving to decrease.

Question

Quizplus · Accepted Answer

An increase in net capital outflow does not cause Canadian national saving to decrease; instead, it reflects the use of national saving for investment abroad rather than at home. National saving is determined by domestic factors like income and consumption, not by how those savings are invested (domestically or abroad).

When Canada Increases Its Net Capital Outflow, It Causes Canadian